Yeo "Our country's stock market is inadequate... Financial investment tax abolition is justified"

Song Eon-seok "There Are Claims of Double Taxation"
On Lee Jae-myung's Capital Gains Tax Deferral, "I Wonder About the Sincerity"

The People Power Party's Fiscal Taxation Special Committee agreed that it is inappropriate to implement the Financial Investment Income Tax (FIIT) while South Korea's stock market has not yet achieved sufficient growth. Although the People Power Party has already proposed a 'FIIT Abolition Bill' as a party stance, the special committee reaffirmed the necessity of abolition once again.

Song Eon-seok, chairman of the People Power Party's Fiscal and Tax Reform Special Committee, is speaking at the discussion forum titled "5th Tax Reform for Enhancing the Value of the Korean Stock Market and Protecting Investors, Abolishing Financial Investment Income Tax," held at the National Assembly on the 18th. Photo by Kim Hyun-min kimhyun81@

Song Eon-seok, chairman of the Fiscal Taxation Special Committee, told reporters after the full meeting on the 18th, "The members agreed that the FIIT needs to be abolished and should be abolished," adding, "There are arguments that the FIIT is necessary, but the current situation leads to the conclusion that it is not appropriate to implement the FIIT immediately." He also added, "There were many remarks that the FIIT might constitute double taxation when considering the securities transaction tax."

Chairman Song emphasized, "In the U.S. stock market, manipulative practices do not exist at all, but in our stock market, the very term 'manipulation' exists," stressing, "This means that the stock market itself is not yet on a normal growth trajectory and is still insufficient." He explained that if the FIIT is hastily implemented while the market growth is insufficient, it could have a significant impact on the market.

Regarding former Democratic Party leader Lee Jae-myung's indication of a FIIT deferral, Chairman Song said, "There is a positive aspect," but added, "They have talked about pushing for it, but no bill has been introduced. I am somewhat curious about the sincerity of this opinion." He continued, "Democratic Party floor leader Park Chan-dae once said that first-generation single-homeowners should be excluded from the comprehensive real estate tax, but again, no bill has been introduced," evaluating, "It feels like a vote-winning strategy or a diversion tactic to mislead the public."

When asked whether the abolition of the FIIT could be included in the government's tax law revision proposal, Chairman Song said, "That might be possible," adding, "Since this is currently the party's opinion, it needs to be confirmed whether the government will explicitly include it in the tax law reform plan."